The Indian rupee declined to its weakest level on record on Friday as a resurgent dollar and sustained portfolio outflows pressured the currency, while heightened geopolitical risks also dampened risk appetite.

The domestic unit appreciated 5 paise to close higher at 84.45 after opening flat at 84.49 against the US dollar on Friday, according to Bloomberg data.

The rupee touched an intraday record low of 84.507 to a dollar, but ended stronger at 84.445/$1, despite the US dollar index strengthening to a two-year high, as the Reserve Bank of India (RBI) likely sold the greenback to cap further depreciation in the currency,

The Indian rupee is expected to stay on the back foot on Friday, pressured by a rebound in the dollar amid uncertainty about the pace of rate cuts in the United States, while persistent portfolio outflows also remain a worry for the local currency.

The Indian Rupee hit a historic low today, largely owing to the US Dollar's rally and expected outflows from domestic equities. The INR fell to an all-time low of 84.4125 against USD before settling at 84.3925, the same as its closing number in the previous session. This is the fifth straight session that the currency has hit record lows.

The Indian rupee hit a record low of 84.50 against the US dollar, pressured by geopolitical tensions, a sell-off in domestic equity markets, and rising crude oil prices. Foreign institutional investors continued selling,

MUMBAI: The Indian rupee weakened to its all-time low on Thursday, pressured by likely foreign outflows from local stocks and renewed strength in the dollar as investors tempered hopes of aggressive rate cuts by the US Federal Reserve.